Rhodium
Raw Material Rhodium – Difficult to Obtain, Difficult to Replace
Properties of Rhodium
Rhodium is one of the noblest and rarest platinum group metals in the world. It is extracted almost exclusively as a by-product from the mining of platinum and palladium, sometimes also from the mining of nickel or copper. The extraction process is very complex. Rhodium has a high reflectivity, hardly reacts with acids, but has a high catalytic activity.
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Areas of Application for Rhodium
Rhodium is one of the key elements for car catalytic converters. The reason: rhodium can break down nitrogen oxides into harmless nitrogen and water. More than 31 tonnes will be used for this purpose in exhaust filters in 2022. The global automotive industry is already consuming more rhodium than is primarily mined. Based on new emission standards in China, India and Europe, this demand could increase even further.
The chemical industry consumes another eight per cent of total consumption, while glass producers process about four per cent of the available rhodium. Small quantities of the precious metal are also used in the electronics industry and in jewellery production.
A large part of the rhodium traded worldwide is used in automotive catalytic converters. But rhodium also plays a role as a catalyst for the chemical industry.
Physical Asset Rhodium
Trivia About Rhodium
There are no mines for rhodium. Of the 25 tonnes of rhodium mined worldwide each year, 98 per cent comes from South Africa, Russia and Canada.
About 10 tonnes per year are currently returned to the market through recycling. Unlike some other precious metals, the world market for rhodium is limited and the price is therefore very volatile.
The price increase in the past four years has peaked at over 1,000 per cent. The demand for 2022 will increase to about 35 tonnes.
Trend of Prices
